Share Buybacks Slump in 2025 After Tax and SEBI Changes
Why in the news
Tax and regulatory changes have made buybacks rare among listed Indian companies in 2025.
Key facts
- Till 26 June 2025: 4 buybacks worth ₹186 crore.
- Previous calendar year: 38, over ₹8,000 crore.
Tax change from 1 October 2024
| Aspect | Old regime | New regime |
|---|---|---|
| Who pays | Company | Shareholders |
| Tax | 20% buyback tax | Capital gains tax, like dividends |
Effect and SEBI reform
- Shareholders now find dividends more attractive after tax.
- SEBI removed the open market route from FY2025; tender offer is the only route and is costlier.
Exam angle
- Remaining route: tender offer; tax effective: 1 October 2024.